Evaluating Returns on Test Automation: Simple Techniques for Test Managers:

Last updated on April 6th, 2024 at 10:53 am

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Automation tests are essential but can be expensive. It enhances efficiency but requires investment. Balancing benefits and expenses ensures practical and effective test automation. Test managers must decide whether to invest in automation tools or continue with manual testing. This choice involves weighing the benefits and drawbacks of each approach to ensure effective and efficient testing. Let’s check out two smart ways to analyze test automation results. 

• Efficiency ROI Calculation

• Risk Reduction ROI calculation

Efficiency ROI Calculation:

To see if automated testing is worth it, think about how much time it saves. Check if the time saved invested in automated testing is worthwhile for your efficiency. 

a) Find the time to create automated test scripts by multiplying the hourly automation time for each test by the total number of automated test cases, then divide by 8 hours per day. 

b) Calculate how long automated tests take: Multiply the time it takes for one test, the total number of tests, and the Return on Investment (ROI) period. Then dived by 18.

c) Calculate automated test analysis time by multiplying the test turn-on investment (ROI), then divide the result by 8. 

d) To find automated test maintenance time, multiply maintenance time by the period of ROI, then divide the result by 8. This formula helps assess the efficiency of automated testing over time. 

e) To calculate manual execution time, multiply the time it takes to manually test one case by the number of cases and the period of return on investment, then divide by 8.

ROI period is measured in weeks. For manual work, divide by 8; for automation, divide by 18. This helps gauge the time it takes to recoup investment, making decision-making more straightforward. Shift your focus from making money to saving time. Imagine automated tests replacing manual ones, and just one person doing manual testing. By investing time wisely, you’ll gain efficiency and productivity, leading to overall improvement without necessarily increasing financial returns. 

Risk Reduction ROI:

This approach highlights how automation is helpful and deals with worries not discussed in the Efficiency ROI method. It emphasizes the good things about automation and tackles concerns that the Efficiency ROI method doesn’t cover. Automation helps people focus on important tasks, increasing efficiency and lowering the chance of mistakes after a project is completed. It makes work easier, improves results, and reduces the risk of errors. Therefore a good test automation company calculates the gain by factoring in the possible money lost due to undiscovered bugs. In simpler terms, figure out how much money you could save by finding and fixing any hidden issues before they cause financial problems. The formula stays unchanged: potential loss from not using automation equals the gain. In simpler terms, if you don’t automate, you could lose out. Its straightforward equation emphasizes the importance of automation to avoid missing out on potential benefits. This approach considers better coverage and acknowledges the good influence of automated testing on product quality. It helps ensure more thorough testing and improves the overall quality of the product. It’s a bit subjective and needs careful risk analysis. Simplifying it: it’s kinda personal and involves looking at risks.


Improving automation testing is a good idea because many things affect ROI calculations. Use better tools, spend more time at the start, and improve reporting for better results. Keep it simple and efficient. Calculating ROI varies for each situation. No single method works for everything. It depends on factors like goals, costs, and returns. Testers management should choose the method that best suits their needs and situation. 

In summary, investing in test automation means thinking about saving time and lowering risks. It’s about being efficient and reducing errors. Test managers can make smart decisions by using advanced ROI methods that match testing goals and resource limits effectively.

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